Manufacturers Continue To See Growth

The Federal Reserve Bank of Philadelphia today released
the September Business Outlook Survey. Although the current activity
indicator fell below last month's reading, survey participants report continued
expansion in the region's manufacturing sector. In the special question, firms
were asked about the impact of special depreciation allowances on spending for
capital equipment.

"Respondents to this month's Business Outlook Survey
reported that growth in the region's manufacturing sector is continuing. While
some of our survey's current indicators, such as general activity and
shipments, suggest modest growth, other indicators, such as new orders and
employment, suggest a sustained pace of growth. Almost 60 percent of the
manufacturers reported increases in prices for inputs this month, and almost 40
percent reported increases in prices for their own manufactured goods.
Manufacturing executives remain optimistic about continued growth in their
sector, but most of the six-month-ahead indicators fell this month."

This survey, which was started in 1968, gathers
information on the manufacturing industry in the Third Federal Reserve District
covering eastern Pennsylvania, southern New Jersey, and Delaware. Participation
in the survey is limited to manufacturing firms with plants in the area with
more than 100 employees. The survey asks about the current pace of business in
the participants' plants and their future expectations of business.

To arrange an interview, contact Kathy Dibling, the Bank's
assistant media advisor, at (215) 574-4119. The next Business Outlook
Survey will be released Thursday, October 21, 2004, at noon and will be
made available on this web site and over PR Newswire. The annual revisions of
historical data can be found at http://www.philadelphiafed.org/econ/bos/boshistory.html.

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